Siltronic AG supplies a strategic raw material to the electronics industry: silicon wafers, on which integrated circuits are manufactured. Based in Munich, the German company operates upstream of the etching and deposition stages carried out by semiconductor manufacturers. Its business combines materials chemistry, crystal growth and precision machining, with one central requirement: achieving surfaces and crystal structures suited to processes that are increasingly sensitive to defects.
Roots in German chemistry
Siltronic’s history is linked to that of Wacker Chemie and the development of silicon for electronics. The founding of Wacker-Chemitronic in 1968 marked a pivotal stage in this activity, notably established in Burghausen, Bavaria. The company subsequently supported the international expansion of semiconductor manufacturing, with industrial capacity in Germany, the United States and Singapore.
Listed on the Frankfurt Stock Exchange in 2015, Siltronic retains Wacker among its shareholders. The proposed takeover by Taiwan’s GlobalWafers failed in 2022 because German approval was not obtained within the allotted time. This episode highlights the strategic importance of materials suppliers, which are less visible than processor designers but indispensable to their production.
Wafers with demanding specifications
Siltronic produces monocrystalline silicon wafers, notably in diameters of 200 and 300 millimeters. Their manufacture begins with the growth of a crystal, which is then cut into thin slices. Treatment, polishing and cleaning operations aim to control the flatness, contamination and electrical properties of the substrate. Some wafers receive an epitaxial layer whose characteristics are tailored to the customer’s needs.
These products are used to manufacture components found in computers, smartphones, cars, industrial equipment and data centers. Siltronic therefore does not design chips: it supplies the substrate that makes their manufacture possible. Product qualification with customers, consistent deliveries and stable performance are major competitive factors. This activity also requires substantial industrial investment and remains exposed to demand cycles in the semiconductor market.
What next?
The opening of a new 300-millimeter wafer plant in Singapore in 2024 illustrates Siltronic’s efforts to prepare for its customers’ future needs. The challenge now is to ramp up this capacity while adjusting its utilization to the actual pace of orders.
In the longer term, artificial intelligence, electrification and the proliferation of electronic functions may support demand for silicon. However, their impact on volumes is neither immediate nor uniform. For Siltronic, the path ahead will depend as much on these end markets as on its ability to control costs and resource consumption and meet the technical requirements of the next generations of components.